RE:RE:RE:RE:RE:Gold up 1%no the play was to long goldx in case there is a higher offer for goldx even if there is no discount. if the discount was the opposite, then shorting goldx would make you lose your shirt if there is a bidding war for goldx and that arbitrage would not make sense.
if the trade was to long goldx and short gcm in case there was a bidding war for goldx, then all they need to do was to set it up, and would not need to be continuously shorting 33% of the daily volume.
the same thing happened to argonaut gold when it was dropping to a dollar, around 33% of the daily volume was shorts, and it was not an arbitrage situation, it was not in a merger. if you look at the iiroc list, there are certain companies that have very high short trading volume, and they are not undergoing a merger or buyout.
and in the case where there is no arbitrage, if somebody wanted to short a company to bet on it failing, they can just set up the short and wait for it to fail by itself if it was a bad company. they would not need to continuously short trade 33% of the daily volume, which means they need to continuously work hard to keep profitable companies down.
you sound like the bitcoin pumpers always telling people to educate themselves as if anybody who does not buy bitcoin is dumb and uneducated.
menoalittle wrote: If it weren't trading at a discount, an arbitrage play wouldn't exist.
(You ought to educate yourself a little better...)